SOURCE: Mortgagebot

June 30, 2008 11:12 ET

Mortgagebot Incorporates Experian's Authentication Services to Help Lenders Combat Mortgage Fraud, Identity Theft

To Help Lenders Detect and Prevent Mortgage Fraud, Mortgagebot Offers Experian's Robust "Knowledge-Based Authentication" Capabilities

MEQUON, WI--(Marketwire - June 30, 2008) - According to the Web site of the Federal Bureau of Investigation (FBI), the downward trend in the housing market is providing an ideal climate for mortgage fraud. During 2007, the number of mortgage-fraud cases the FBI pursued increased by 47 percent over 2006, from 818 to 1,204(1). And while the total annual loss from mortgage fraud is unknown, some estimates place it at over $10 billion(2).

Now more than ever, mortgage lenders need to confidently distinguish genuine borrowers from fraudsters.

That's why Mortgagebot® LLC ( the Mequon, Wis.-based, industry-leading provider of consumer-direct mortgage-application technology solutions, is now offering its bank and credit-union clients a powerful toolset they can use to efficiently verify and authenticate a borrower's identity: Experian® Fraud and Identity Solutions' elite and robust Authentication Services Level Three.

To help ensure that mortgage applicants are in fact who they claim to be, users of the Mortgagebot PowerSite® family of online, consumer-direct mortgage-application solutions now have the option to subscribe to a seamless and secure implementation of Experian's Authentication Services.

"We're pleased to offer our clients the finest in fraud detection and prevention solutions," said Dan Welbaum, Mortgagebot's Chief Marketing Officer. "America's regulated banks, thrifts, and credit unions are known for responsible, community-focused mortgage lending, and the advanced anti-fraud capabilities our clients can gain from Experian's Authentication Services Level Three helps them do even more to live up to their reputation."

Triple protection against mortgage fraud

Experian's Authentication Services is a server-based application set that helps mortgage lenders detect and prevent fraud by verifying a consumer's identity on multiple levels:

--  Level One compares consumer data against Experian's consumer identity
    databases of more than 200 million consumers, 150 million households, and
    25 million businesses.
--  Level Two is an enhanced verification service that accesses both
    identity databases and Experian's File One™ consumer credit database of
    more than 200 million "credit-active" consumers.
--  Level Three -- which is the solution offered by Mortgagebot to its
    clients as "Advanced Identity Assessment" -- provides not only Level One
    and Level Two verification detail, but also incorporates up to eight
    "challenge/response" questions that only the true borrower would be able to
    correctly answer.

Here's how it works: In the "Personal Information" section of the lender's PowerSite mortgage application, borrowers must answer all of the challenge/response questions before they can complete their application. They're given limited time to answer the questions, and are allowed a limited number of answer attempts. The number of questions, the allowed time to answer, and the number of unique attempts allowed are all determined and configurable by the lender.

After applicants answer the questions, PowerSite sends an identity-assessment request to Experian. Based on the question responses and graded answers, the lender can determine whether or not the applicant is eligible for online approval. Applicants not eligible for online approval are referred to the lender's staff for further review.

The result? Mortgagebot clients can more readily detect and prevent mortgage fraud before it happens. And borrowers can rest assured that their lender's identity assessment efforts have no impact on their credit score.

Advanced identity-assessment capabilities help keep lenders in regulatory compliance

In light of new federal regulations that take effect in late 2008, the timing is good for Mortgagebot to provide its clients with powerful new identity-assessment technology.

The USA Patriot Act of 2001 requires all federally regulated financial institutions to implement know-your-customer (KYC) programs that help prevent identity theft, money laundering, and terrorist financing. But government regulations move to a new level in 2008, when all financial institutions must come into full compliance with the "Red Flag" provisions of the Fair and Accurate Credit Transactions Act (FACTA) of 2003. These new regulations -- which took effect January 1, 2008 and are enforceable Nov. 1, 2008 -- require financial institutions to implement an aggressive program for combating identity theft on both new and existing accounts.

"These new Red Flag regulations are part of the same set of revisions to the Fair Credit Reporting Act that have given consumers a wide range of credit and identity protections, including free credit reports," said Welbaum. "Our customers are committed to fighting mortgage fraud and identity theft in their communities, so the new Experian-based identity-assessment capabilities we're offering our PowerSite clients are timely indeed."

About Experian

Experian is a global leader in providing information, analytical, and marketing services to organizations and consumers to help manage the risk and reward of commercial and financial decisions. Combining its unique information tools and deep understanding of individuals, markets, and economies, Experian partners with organizations around the world to establish and strengthen customer relationships and provide their businesses with competitive advantage. For consumers, Experian delivers critical information that enables them to make financial and purchasing decisions with greater control and confidence. Clients include organizations from financial services, retail and catalog, telecommunications, utilities, media, insurance, automotive, leisure, e-commerce, manufacturing, property, and government sectors. Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. It has corporate headquarters in Dublin, Ireland, and operational headquarters in Costa Mesa, Calif. and Nottingham, UK. Experian employs approximately 15,500 people in 38 countries worldwide, supporting clients in more than 65 countries around the world. Continuing sales for the year ended March 31, 2008 were in excess of $4 billion. For more information, visit the Group's Web site at

About Mortgagebot LLC

Mortgagebot LLC ( is the Inc. 500 company that leads the industry in providing consumer-direct, Internet-based mortgage-origination solutions, blending extensive mortgage experience with leading-edge "software-as-a-service" (SaaS) technology to create robust, scaleable, and affordable Web sites for nearly 800 mortgage lenders nationwide. Mortgagebot's flagship product suite is the award-winning Mortgagebot PowerSite product family, a fully configurable and completely private-labeled solution set that enables lenders to take mortgage applications enterprise-wide: over the Internet, through the branch or call center, or from a loan officer's PC. PowerSite's intelligent and interactive functionality enables borrowers to complete an entire mortgage application, get pre-approved, and receive full disclosures as little as 20 minutes. And because PowerSite solutions are deployed via the Web, there's no PC software to install or maintain. Now with the recent launch of its mortgage-shopping Web site, Mortgage Marvel® (, Mortgagebot has created a revolutionary, easy-to-use way for borrowers to instantly obtain and compare accurate, low mortgage rates -- from hundreds of lenders -- without revealing any personal data.

(1) Marcy Gordon, Washington Post (May 23, 2008); p. D8.

(2) FBI 2007 Mortgage Fraud Report (April 2007);

Mortgagebot, Mortgagebot PowerSite, and Mortgage Marvel are registered trademarks of Mortgagebot LLC. Experian is a registered trademark and File One is a trademark of Experian Information Solutions, Inc.

Contact Information

  • For more information, contact:

    Cindy Golisch
    PR Unlimited

    Dan Welbaum
    Chief Marketing Officer

    Mortgagebot LLC
    1000 W. Donges Bay Rd., Ste. 200
    Mequon, WI 53092
    Toll-Free: 877-861-3354